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Commerce & e-commerce

 

Forget products.

Forget services.

They're converging. Blur talks about "a meltdown of all traditional boundaries... In the BLUR world, products and services are merging. Buyers sell and sellers buy. Neat value chains are messy economic webs. Homes are offices. No longer is there a clear line between structure and process, owning and using, knowing and learning, real and virtual. Less and less separates employee and employer. In the world of capital, itself as much a liability as an asset--value moves so fast you can't tell stock from flow. On every front, opposites are blurring."

Davis calls product-service hybrids "offers." He writes that vendors who sell unconnected, stand-alone products "will be viewed as no better than snake oil salesmen..." The "offer" seeks to create a lifelong relationship. Davis presents these "Management Mindsets" for products, services, and the offer hybrids.

  Product Service Hybrid
Time Horizon Time of sale Period of contract Life of Customer Need
Buyer "Care Abouts" Price, Delivery, Convenience Ongoing support Upgradeability
Dominant Cost Focus Direct Costs Period Costs Design Costs
Source of Value Manufacturing process Training, Maintenance Platform
Design Fixed, uniform Customized Learning (i.e. improving)
Revenue Model List Price Subscription period Subscription & user fees
Marketing objective Brand loyalty Relationship-building Community-building

 

Why the economy will reach unparalleled heights over the next two decades:

  • new technology developments give birth to entirely new industries
  • one interconnected world increases markets and competition
  • the velocity of money and flow of capital keeps accelerating, fueling continued growth
  • the largest educated population the world has ever seen, receiving the largest transfer of wealth in history

Esther Dyson: "...electronic commerce is all about changing the center of power from the company to the customers. This change will be expensive, but it is what is going to differentiate an organization from its competition. Companies can succeed if they

  • listen to their customers,

  • learn about their needs, and then

  • answer their questions individually and in person...."

CyberAtlas "the reference desk of web marketing"

eBusiness Strategies from Scient

The Cluetrain To Do List
These seem particularly worthy:

! Share your secrets. Flip your 80:20 rule for keeping secrets. Instead of classifying 80% of your information, aim at classifying only 20%. Most of the secrets you keep no one would bother reading even if you delivered them with the morning newspaper.

! Tell stories. Without a story, you have no company, just as a family without a story is only a collection of relatives. Aim at telling it so often — and hearing it so often from other people in your company — that it transcends story to become myth.

! Hire a historian. Get someone who knows history to tell yours. Capture your narrative.

! Screw deadlines. Empower the people who can get it done. Ask them to work on it as hard as they can. In such an environment, deadlines are nothing but a power trip.

! Stop pretending to your customers. Invite your best customers into your annual sales meeting. Then speak as frankly as you would if they weren't in the room.

! Guide your market. Write a guide to your industry that actually serves your customers' interests.

! Dump voice mail. A good beginning would be voice mail. Dump it. Talk to the public. Take your kudos and take your lumps. It's part of life, part of business, part of humanity.


B-Webs, organizing the Legos of the marketplace


 

See Best Thinking

Business
Related documents from the net
and

e-commerce
Related documents from the net

 

Best Business Thinking

ZDNet's e-business best practices

The customer experience is the key driver of success online. The sites that generate the best customer experiences get more "sticky" traffic, higher revenues and a stronger brand. In contrast, the sites with bad customer experiences -- even with the best back-end technology or a great off-line brand -- lose customers and revenue at an astonishing rate.

...on the Web, brand is the experience and the experience is the brand.

Michael Porter on Competitive Strategy

"the whole point of an online store is to help the customer buy something in an easy and understandable way. Amazon.com puts that goal front and center with its "1-Click Ordering."

links

Harvard Business Review

Forrester
Garage.com
McKinsey Quarterly
Business 2.0 links page
The Emerging Digital Economy
Leader to Leader

Tom's Inflation Calculator
The Chronicle 500-A Guide To The Bay Area's Public Companies
Advertising Age - 50 Best Commercials
 
Advertising Age - The Advertising Century

 

ecommerce

all E Commerce weekly journal on e-biz
eMarketer handy research metasite
Banner Advertising on the Web
Internet Advertising Bureau
ICONOCAST
Electronic Commerce Knowledge Center
CIO WebBusiness - Strategies for Using the Web in Business
ECnow.com Top 10 Trends in 1999
USWEB - CKS

Kleiner Perkins Caufield & Byers

Who's Mktg Online

Consultants

Tom Peters (new site)
Forrester Research
Gemini Consulting
Mercer Management Consulting

Banking

American Banker
American Bankers Association
Investment Banks
Online Banking Association
Online Banking and Financial Services (ORC)
Omega Performance Corporation
Alex Sheshunoff
FPI Accelerate Success

 

High-tech Company

 Ecommerce

from Customers.com

 how to succeed in ecommerce

 1. Make it easy for customers to do business with you.

 2. Focus on the end customer for your products and services.

 3. Redesign your customer-facing business processes from the end customer's point of view.

 4. Wire your company for profit: design a comprehensive, evolving electronic business architecture.

 5. Foster customer loyalty--the key to profitability in electronic commerce.

 


 i was developing an ecommerce site with a difference, a consultative site. it would teach visitors how to get more customers. enlightened visitors would recognize the value of our products. instead of listing everything money can buy, this site would recommend the best in each category. alas, a sales-focused manager took over the project. forget differentiation. forget service. let's sell quicken. and act! and whatever they want. too bad there's no margin in doing that.


five things a business can do to capitalize on the opportunities for business in cyberspace:

Establish direct channels. Companies can use the increasingly ubiquitous Internet to establish direct, interactive links with customers, suppliers, trading partners, and others in their value chain.

Create new value. Companies can use the Internet to create and deliver new products and services that have not been feasible before.

Extend boundaries. Cyberspace transcends geographical borders and other traditional boundaries, enabling businesses of all kinds and sizes to widen their horizons.

Become a community magnet. With effort and commitment a company can dominate the information and access channels within an industry or community of common interest, effectively setting the rules by which others must play.

Short-circuit the value chain. Direct links with customers and suppliers make it possible for businesses to bypass others in the value chain, either eliminating intermediaries or capturing their businesses.

more notes on e-Business

  Strategic Planning Digital Strategy
Nature Static Dynamic
Environment Physical Virtual
Discipline Analytical Intuitive
Time Frame 3-5 years 12-18 months
Pressure Point 5 forces new forces
Technique Leverage value chain Destroy value chain
Participants Strategists, sr mgt Everyone (including business partners)
Tech's Role Enabler Disrupter
Output Plan Killer Apps

from Unleashing the Killer App
by Larry DOwnes and Chunka Mui


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